Collapse in number of rigs continues despite soaring oil prices

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Baker Hughes reported on Friday that the number of oil and gas rigs in the United States further decreased this week from 64, to 465, with a total of 526 oil and gas rigs 526 fewer than at the same period last year, American drillers rushing and making significant changes to their operations.

In the past six weeks, the combined oil and gas platforms have lost a total of 327 platforms.

The number of oil rigs declined for the week by 60 rigs, according to data from Baker Hughes, bringing the total to 378, a loss of 427 rigs from year to year. It is the smallest number of active oil platforms since July 2016.

The total number of active gas rigs in the United States has decreased by 4 according to the report, to 85. This compares to 186 a year ago.

The number of active platforms taken offline in the past six weeks clearly indicates that the US oil industry is under pressure to make major and painful changes in response to near-capacity storage and low oil prices.

The EIA’s estimate for the week is that oil production in the United States fell to 12.2 million barrels of oil per day on average for the week ending April 24, which represents 900,000 b / d outside the historic high and 100,000 b / d lower than the week before. This is the lowest production level since May of last year.

At 1:04 p.m., the WTI was trading at $ 17.03, while the Brent benchmark was trading at $ 21.71 (+ 1.78%).

The total number of drilling rigs in Canada also decreased by 4 rigs this week, to a total of just 26 rigs. Oil and gas platforms in Canada are now down 37 years.

By Julianne Geiger for Oilprice.com

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